Semiconductor market size in Japan 2016-2025

The size of the semiconductor market in Japan amounted to 46.75 billion U.S. dollars in 2023. It was forecast to increase to almost 50.6 billion dollars by 2025.

Key player in semiconductor industry

Japan accounts for approximately one-tenth of global semiconductor sales, a share that has remained relatively stable over the past decade. The country hosts numerous leading technology firms involved in the semiconductor industry, including Tokyo Electron Ltd., Renesas Electronics Corporation, and Rohm Co., Ltd. In recent years, companies involved in the production of semiconductor manufacturing equipment, including Advantest Corporation, Disco Corporation, and Lasertec Corporation, have shown significant positive development.

Japan's efforts to reignite semiconductor dominance

Japan's once-leading chip-making sector has declined over the past three decades, while rivals like Taiwanese manufacturers have surged ahead. Despite national efforts since the 2000s to revitalize the semiconductor industry, Japan has struggled to regain global prominence. To bolster its position, the Japanese government provides support through various means, including tax exemptions, subsidies, and land allocations. In fiscal years 2021 to 2023, Japan invested nearly four trillion Japanese yen in its semiconductor industry, including substantial sums allocated to companies like Taiwan Semiconductor Manufacturing Company (TSMC) Limited and Rapidus Corporation. The Ministry of Economy, Trade and Industry (METI) stated in 2024 that it planned to triple the sales of the domestic semiconductor industry from about five trillion Japanese yen in 2020 to 15 trillion yen by 2030.